SINGAPORE: Asia’s refining margin for 0.5% very low sulphur fuel oil dropped over 30% in February compared to the start of the month, data showed on Tuesday.

The front-month crack was at $9.70 a barrel at the Asia close (0830 GMT) on the last trading day of February, compared to $14.16 a barrel on the first day of the month.

Supplies to Asia in February were between 5.5 to 6.0 million tonnes, strengthening from January, Refinitiv ship-tracking data showed.

Meanwhile, about 4 million tonnes of supplies are estimated to arrive in Asia for March, with more loadings expected in the coming weeks, the data showed.

The 0.5% VLSFO cash differential dipped to $5.48 a tonne on Tuesday, while the 380-cst HSFO cash differential edged slightly higher to $2.44 a tonne.

Oil prices rose on Tuesday, supported by hopes a solid economic rebound in China will drive up fuel demand, offsetting worries about further US interest rate hikes dragging on consumption in the world’s biggest economy.

India has withdrawn trading licences for oil tankers and bulk carriers that are more than 25 years old, its shipping regulator said, as the world’s third-largest greenhouse gas emitter looks to cut emissions and reduce the average age of its fleet.

Urals crude exports to China from Russia’s Western ports rose in February on lower freight costs and rising demand, Reuters sources said.